7 Del. Admin. Code § 1352-D-9.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 1352-D-9.0 - Letter of Credit

9.1 Requirements for Use of Letter of Credit to Comply with Financial Responsibility

9.1.1 An Owner or Operator may satisfy the requirements of PART D, Section 3.0 by obtaining an irrevocable standby letter of credit that conforms to the requirements of this Section and is issued by an institution that has authority to issue letters of credit and whose letter of credit operations are regulated and examined by a federal or State agency.

9.1.2 The letter of credit shall be worded as shown in PART D, Section 25.0, Form F except that instructions in brackets are to be replaced with the relevant information and the brackets deleted.

9.1.3 An Owner or Operator who uses a letter of credit to satisfy the requirements of PART D, Section 3.0 shall also establish a standby trust fund when the letter of credit is acquired. Under the terms of the letter of credit, all amounts paid pursuant to a draft by the Department will be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the Department under PART D, Section 18.0. This standby trust fund shall meet the requirements specified in PART D, Section 15.0.

9.1.4 The letter of credit shall be irrevocable with a term specified by the issuing institution. The letter of credit shall provide that credit be automatically renewed from the same term as the original term, unless, at least 120 days before the current expiration date, the issuing institution notifies the Owner and Operator by verifiable service of its decision not to renew the letter of credit. Under the terms of the letter of credit, the 120 days will begin on the date when the Owner and Operator receives the notice, as evidenced by the verifiable service.

7 Del. Admin. Code § 1352-D-9.0

20 DE Reg. 815 (4/1/2017)
27 DE Reg. 536 (1/1/2024) (Final)